7/07/2009

Crapulus Pt. 2

Let me state for the record I believe this is a reasonable idea that, once in the grubby hands of the Congress of these United States, will be long on one time expenses (but referred to as "investments") that won't stimulate aggregate demand appreciably. Why? Because politicians believe more inputs equal better outcomes and activity is synonymous with progress. They want headlines and the appearance of doing something, anything, to help. Moreover, they believe complex, undirected systems can be easily controlled, provided they are the ones in control.

Those who believe in central planning always think they should be the central planner.

5 comments:

Johnny Keynes said...

You contradict yourself...a "reasonable idea"? Really? Despite your subsequent arguments to the contrary? Don't you realize that your line of reasoning is the same that EVERY SINGLE politician takes..."it's a great idea...if only executed in the way that I think it should be done." This is why these things turn into such crap sandwiches in the end.

No, DP, this is decidedly NOT a good idea. For the reasons you state as well as the fact that the vast majority of Porkulus I has not been spent yet. What would be a better idea would be to go back and re-write Porkulus I to accelerate the $750 billion in spending mandated under that plan.

In the end it will not make a long-term difference. While it may provide a short term boost to consumption, the private sector is frightened of investing any money right now because of all of the uncertainty due to Cap'n Trade and healthcare deform legislation.

The Daily Pander said...

Let me restate: this WOULD be a reasonable idea EXCEPT once in the grubby hands...

Your point is well taken: the process is inextricable from the product, so a crappy process necessarily delivers a crappy product.

Johnny Keynes said...

I appreciate the nod. I have a nit to pick with your reply but I will let it go and say "Thank You".

You are a beautiful human being.

Anonymous said...

why does it seem that academics who have never had a job (outside the education field) and who have never run a business always make these claims? Just thought this would be a good topic for the RSP

Johnny Keynes said...

Anon: "these claims"? Can you be more specific?